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Alexis, a courier, was to deliver a pet python to Percy.

However, on arriving at
Percys house, she found the place deserted and a note on the front door stating
that Percy had been called overseas on urgent business. Alexis took the python to a
pet hotel and paid for its care until Percy returned. For her efforts, is Alexis
protected under the law of agency?
2. Penny delivered a car to Amy to sell for not less than RM30,000. Amy sold the
car for RM25,000 to Terry who bought the car in good faith and with no knowledge
of Amys lack of actual authority. Can Penny recover the car from Terry?
3.
Alfred, a hardware merchant, sold his business to Molly. The sale was not
publicised and Molly retained Alfred as manager of the business. Molly instructed
Alfred that he was not to make any purchases of paint on credit. Contrary to these
instructions, Alfred purchased a quantity of paint from Toby, the regular supplier, on
credit for use in the business. The paint was delivered by Toby who did not know
that Alfred had sold the business to Molly. Toby has now discovered the true
situation and wants to claim the price of the paint supplied. Advise Toby.

1) The issue in this case is if Alexis is protected under the law of agency.
According to Section 135 Contracts Act 1950, an agent is defined as a person
employed to do any act for another or to represent another in dealings with
third persons
Section 142 of Contract Act 1950 states that an agent has authority, in
emergency, to do all acts to protect his principal from loss with requirements
that it must be an emergency, there is a need to protect principal from loss,
while it is impossible for the agent to get principals instruction and the agent
must have acted in good faith. Alexis had been unaware of Percys absence
and was therefore unable to contact him or gain knowledge of his arrival.
This results in an emergency situation. Due to a need to protect Percy from
the loss of his pet python, Alexis acted as an agent and took the python to a
pet hotel, acting on good faith to keep the python healthy and safe until
Percys return by paying for the pythons care
Therefore, Alexis is protected under the law of agency due to her becoming
an agent by necessity.
Q2)
The issue in this case is if Penny is able to recover the car from Terry.
Section 135 Contracts Act 1950 states that an agent is a person employed to do any
act for another or to represent another in dealings with third persons. Section 190
Contracts Act 1950 states further that, where an agent, who has no authority, does
acts to third persons on behalf of principal, the principal is bound by those acts if he

has, by his words or conduct induced such 3rd persons to believe those acts are
within the scope of the agents authority.
In this case, Penny sold the car to Terry for RM 25000 despites Amys instructions to
sell her car for not less than RM30000. Amy was bound by the contract since Terry
had believed that the authority was given by Penny. Penny can only claim
compensation from Amy by referring to Section 164 Contracts Act 1950, stating that
an agent must act according to principals directions and if no such directions,
according to custom prevailing in a business of the same kind. Otherwise he must
compensate principal for any loss & account for any profit.
Therefore, Penny is unable to recover the car from Terry. However, Penny is able to
claim compensation from Amy.
Q3)
The issue is whether Toby is able to claim the price of the paint supplied.
Section 135 Contracts Act 1950 states that an agent is a person employed to do any
act for another or to represent another in dealings with third persons. Section 190
Contracts Act 1950 also states that, where an agent, who has no authority, does
acts to third persons on behalf of principal, the principal is bound by those acts if he
has, by his words or conduct induced such 3rd persons to believe those acts are
within the scope of the agents authority.
Molly is now the principal with Alfred as the agent and Toby as the third party. Alfred
could not make any purchase of paint on credit based on Mollys instructions. Molly
is bound by her act since Toby believes her act are within the scope of an agents
authority. Based on Section 164 Contracts Act 1950 an agents duty is to act
according to principals direction and if no such directions, according to custom
prevailing in a business of the same kind, otherwise he must compensate principal
for any loss and account for any profit.
Therefore, Toby is able to claim payments from Alfred because he did not follow
Mollys direction tp order any more paint on credit.